Canadian Self-Employment Tax Calculator
Estimate your 2026 self-employment tax bill: income tax, double CPP/QPP, EI opt-in, QPIP for Quebec, and quarterly instalments.
How self-employment tax works
Self-employed workers pay tax on net business income (gross minus eligible expenses). You pay BOTH halves of CPP or QPP (no employer match), plus QPIP in Quebec and optionally EI Special Benefits elsewhere. Quarterly instalments are due in March, June, September, and December.
Your business details
Total gross revenue from your business before any expenses.
Eligible expenses on Form T2125: supplies, home office, vehicle, professional fees, advertising.
CPP/QPP contributions apply from age 18 to 70. Outside that range you do not contribute on self-employment income.
Annual breakdown
Quarterly instalment schedule
The CRA requires instalments when net tax owing exceeds $3,000 in the current year AND in one of the two previous years.
You must register for GST/HST
Your gross income exceeds the $30,000 small-supplier threshold over the past four calendar quarters. You must register, charge tax to your clients, and remit it to the CRA (or Revenu Québec for QST).
About Canadian self-employment tax
A Canadian self-employed worker is taxed on net business income (gross revenue minus eligible expenses), not on gross receipts. You report your activity on Form T2125 (Statement of Business Activities) attached to your T1 return. Allowable expenses include equipment, supplies, a home-office portion, a share of vehicle costs, business insurance, professional fees, and advertising.
The biggest difference from being an employee: a self-employed worker pays both halves of CPP or QPP contributions. The combined rate is 11.90% on CPP (5.95% × 2) or 12.60% on QPP (6.30% × 2) on income between $3,500 and $74,600, plus CPP2 or QPP2 at 8% on the portion between $74,600 and $85,000. The "employer" half of contributions is deductible from income, and the "employee" half generates a non-refundable tax credit.
Employment Insurance is optional for self-employed workers outside Quebec, and only for Special Benefits (sickness, maternity, parental, compassionate care). A 12-month waiting period applies before you can claim. In Quebec, QPIP automatically covers maternity and parental leave for any self-employed worker (no opt-out), at a rate of 0.878% of net income up to $98,000.
Quarterly instalments
The CRA requires quarterly instalments if your net tax owing exceeds $3,000 in the current year AND in one of the two previous years (the threshold is $1,800 in Quebec). The dates are March 15, June 15, September 15, and December 15. Missing a payment triggers interest (and possibly a penalty) at the prescribed rate.
GST/HST: the $30,000 threshold
As soon as your taxable sales reach $30,000 over four consecutive calendar quarters, you must register for GST/HST (and QST in Quebec). You charge tax to your clients and remit it to the CRA or Revenu Québec, netting Input Tax Credits (ITCs) for the tax you paid on business expenses. Many self-employed workers register voluntarily below the threshold to recover ITCs on their expenses.
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Frequently Asked Questions
Last updated: July 2026
You must register for GST/HST once your taxable sales reach $30,000 over four consecutive calendar quarters. This is the small-supplier threshold. Below it, registration is optional, but you cannot charge or collect GST/HST. Many self-employed workers register voluntarily even below the threshold so they can claim Input Tax Credits (ITCs) on business expenses. In Quebec, the same $30,000 threshold applies to QST, administered by Revenu Québec. You can register for both through Revenu Québec's combined GST/QST registration.
If your net tax owing exceeds $3,000 in the current year AND in either of the two previous years ($1,800 in Quebec), the CRA requires quarterly instalments. The four due dates are March 15, June 15, September 15, and December 15. You can use the no-calculation option (CRA tells you what to pay based on prior years), the prior-year option (one-quarter of last year's tax), or the current-year option (one-quarter of estimated current-year tax). Missing or underpaying instalments triggers interest at the prescribed rate, currently around 8% to 10% annualized.
Reviewed by Alexandre Bernier, CFP®, CIM®
Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →